Shortly after the central bank announced its exchange rate, the leu dropped to a fresh historic low of 4.4045 per euro in intraday trading, amid uncertainties concerning possible economic and social measures the new government plans to take. By 14:10 pm, the leu had fallen to yet another record low of 4.415/4.417 per euro.
Friday, the leu took a serious hit after the centrist-right government led by Mihai Ungureanu couldn’t withstand a no-confidence motion in parliament. The leu fell to 4.401 per euro in the intraday session, from around 4.38 per euro before the announcement. Market participants said the central bank stepped in and sold euros to protect the leu.
Against the US dollar, the central bank computed an indicative of the leu of 3.324 units Monday, 0.5% weaker on the day.
The leu opened at 4.3895/4.393 per euro, from 4.3925/4.395 per euro at Friday’s closing, and traded in a narrow range in the first part of the session. Toward the afternoon, the leu started to depreciate, amid rising volumes.
On the money market, overnight rates were at 4.1%-4.6% a year, from 3.8%-4.3% a year Friday.